Millennials Are Still a Driving Force of Today’s Buyer Demand
If you're considering selling your property but are unsure if there are any prospective buyers, you should know that there are still people looking to purchase a home in this day and age. And they might find all they need in your home.
Although the millennial generation has been referred to as the "renter generation," that moniker could no longer be appropriate. The largest generation, millennials, are actually a key factor in today's housing market's buyer desire. This is why.
Millennial Homebuying Power
While it is undeniable that rising mortgage rates are making it more difficult to purchase a home today, many millennials are still ready and financially able to do so, whether it be their first home or a move-up. That is largely due to the importance they attach to education.
According to a recent First American piece, millennials may be the most educated generation in the history of our country. They frequently have higher salaries as a result, which increases their ability to purchase a home. Odeta Kushi, First American's deputy chief economist, explains:
“In 2020, millennials with a bachelor’s degree had a median household income of over $100,000, while those with at least a graduate degree had a median household income of over $120,000. Compare those income levels with the median household income of millennials with just a high school degree (or some college) of $60,000 and the earning power benefits of higher education are undeniable. . . . Millennials’ pursuit of higher education is good news for the housing market. . . because education is the key to unlock both greater earning power and, in turn, homeownership.”
Furthermore, as wages are one of the main factors determining affordability for home purchases, millennials can achieve homeownership goals by earning more money.
Millennials Continue To Be a Driving Force of Demand
Numerous studies have examined the attitudes of the millennial generation toward homeownership and how they are uniquely situated to shape the future of the housing market. The number of potential millennial homeowners, which is the largest generation, will have an effect on the market for years to come. According to a Forbes article:
“At about 80 million strong, millennials currently make up the largest share of homebuyers (43%) in the U.S., according to a recent National Association of Realtors (NAR) report. Simply due to their numbers and eagerness to become homeowners, this cohort is quite literally shaping the next frontier of the homebuying process. Once known as the ‘rent generation,’ millennials have proven to be savvy buyers who are quite nimble in their quest to own real estate. In fact, I don’t think it’s a stretch to say they are the key to the overall health and stability of the current housing industry.”
If you're considering selling your home but are hesitating because you assume that due to increasing mortgage rates, buyer demand has decreased, realize that this isn't always the case. The demand for homes has decreased this year, but millennials are still actively seeking. According to an article by First American Chief Economist Mark Fleming
“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”
Millennials are eager to become homeowners and are in a good position to do so. If you're prepared to sell your home, be aware that it can be exactly what they need.
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